Correlation Between Bassett Furniture and Bausch
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bassett Furniture Industries and Bausch Health Companies, you can compare the effects of market volatilities on Bassett Furniture and Bausch and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bassett Furniture with a short position of Bausch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bassett Furniture and Bausch.
Diversification Opportunities for Bassett Furniture and Bausch
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bassett and Bausch is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bassett Furniture Industries and Bausch Health Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bausch Health Companies and Bassett Furniture is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bassett Furniture Industries are associated (or correlated) with Bausch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bausch Health Companies has no effect on the direction of Bassett Furniture i.e., Bassett Furniture and Bausch go up and down completely randomly.
Pair Corralation between Bassett Furniture and Bausch
Given the investment horizon of 90 days Bassett Furniture Industries is expected to under-perform the Bausch. But the stock apears to be less risky and, when comparing its historical volatility, Bassett Furniture Industries is 3.03 times less risky than Bausch. The stock trades about -0.01 of its potential returns per unit of risk. The Bausch Health Companies is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 4,334 in Bausch Health Companies on September 12, 2024 and sell it today you would earn a total of 2,796 from holding Bausch Health Companies or generate 64.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 24.19% |
| Values | Daily Returns |
Bassett Furniture Industries vs. Bausch Health Companies
Performance |
| Timeline |
| Bassett Furniture |
| Bausch Health Companies |
Bassett Furniture and Bausch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bassett Furniture and Bausch
The main advantage of trading using opposite Bassett Furniture and Bausch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bassett Furniture position performs unexpectedly, Bausch can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bausch will offset losses from the drop in Bausch's long position.| Bassett Furniture vs. Hooker Furniture | Bassett Furniture vs. Flexsteel Industries | Bassett Furniture vs. Haverty Furniture Companies | Bassett Furniture vs. La Z Boy Incorporated |
| Bausch vs. Hudson Pacific Properties | Bausch vs. Teradyne | Bausch vs. Bassett Furniture Industries | Bausch vs. Live Ventures |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |